Monte Carlo Simulation Presentation Top of Form Bottom of Form Presentation Content Top of Form For this assignment, consider the following scenario: Your current place of employment has tasked you to...

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Monte Carlo Simulation Presentation


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For this assignment, consider the following scenario:




Your current place of employment has tasked you to investigate how Monte Carlo Simulation could be implemented and to prepare a presentation with examples. (If you would like, you might also consider another company, but preferably you should choose your current company).





Develop a presentation addressing the following:





o Describe the company environment


o Explain how Monte Carlo simulation might be utilized at the organization


o Provide 2 solid examples


o Pick 1 of your examples and go into more detail. Some things to consider might be:


o Explain what would go into the model


o How would you set it up in Excel? What Excel functions might be needed


o What information is needed? For example, what distributional shapes would characterize certain variables? etc.


o Basically, you should try to explain how you do the analysis without actually having to do it.


o Let's say the analysis was actually performed. How can management use these results? How would it benefit the company?







Guidelines:


o Your power point presentation should be 10-12 slides not including title and reference slides. Your slides should be eye-pleasing, professional, and concise.


Provide citations in APA format for all references used.
Answered 1 days AfterSep 29, 2021

Answer To: Monte Carlo Simulation Presentation Top of Form Bottom of Form Presentation Content Top of Form For...

Amar Kumar answered on Sep 29 2021
126 Votes
Monte Carlo Simulation
Monte Carlo Simulation
Introduction
Monte Carlo simulation is a computer technique that uses repeated random sampling to determine the probability of a ra
nge of unknown quantities.
John Neumann and Ulam Stanislaw developed the Monte Carlo Method to help people make better decisions in uncertain situations.
It was named after the well-known casino town of Monte Carlo, Monaco, since the modeling technique is based on the element of chance, like a game of roulette.
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Basic principles
Advantages
Role of sponsor and management in simulation study
Pseudo random numbers and danger of replacing random variables by their means
Example of Monte Carlo in computing integral and advantages to the organization
Overview
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Basics
System: The physical process of interest
Model: Mathematical representation of the system
Models are a fundamental tool of science, engineering, business, etc.
Abstraction of reality
Models always have limits of credibility
Simulation: A type of model where the computer is used to imitate the behavior of the system
Monte Carlo simulation: Simulation that makes use of internally generated (pseudo) random numbers
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Often the only type of model possible for complex systems
Analytical models frequently infeasible
Process of building simulation can clarify understanding of real system
Sometimes more useful than actual application of final simulation
Allows for sensitivity analysis and optimization of real system without need to operate real system
Can maintain better control over experimental conditions than real system
Time compression/expansion: Can evaluate system on slower or faster time scale than real system
Some Advantages of Simulation
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Example Use of Simulation:
Monte Carlo Integration
Common problem is estimation of ...
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